GAXY - Earnings call transcript Q3 2022 | Galaxy Next Generation, Inc.

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Unidentified Company Representative

Good afternoon, everyone, and welcome to Galaxy Next Generation’s Third Quarter Fiscal Year 2022 Conference Call. The earnings release that accompanies today’s call was distributed to the Newswire early this afternoon. In our remarks today, we will include statements that are considered forward-looking with the meaning of Securities Laws, including forward-looking statements about future results of operations, business strategies and plans, our relationship with our customers, market and potential growth opportunities.

In addition, management may make additional forward-looking statements in response to your questions.

Forward-looking statements are based on management’s current knowledge and expectations as of today, and are subject to certain risks and uncertainties that may cause the actual results to differ materially from the forward-looking statements. such Form uncertainties other XX-Q, with SEC. of our contained reports discussion the recent most Form detailed risks are and in filed A XX-K, and obligation any The to undertakes no forward-looking company statements. update Chief hand now over Next McGahee. I’ll that, Financial the Magen With Officer, to call Galaxy Generation’s Magen?

Magen McGahee

this for were listening technical Thank you, reminder, join are our live discuss vendor to behalf trying financial some the same distributed unable all and XX, as be on morning, last finally year call we and and make who to due our glad for our March that ended everyone. calls. experience operational join fiscal reach XXXX. I you to Brooks, to I’m it of the difficulties of those We did supports and who we the third joining And recording to XXXX change. quarter minute good apologize able today morning, if hopefully will you’re time results will of thank a as our these do

customer driven experience our We quarter during innovative the demand sales execution from the from our our solutions our business to momentum team for across and continue by growing base.

is in markets within a success education increase sales adding of the continued channels to K-XX additional our our ability Our while result regional market penetration existing as well.

are and the our the and developed where state over sectors. added growth seeking new Texas, we has in Master X,XXX to have further we reseller a school our accelerate and with where client to continue in government districts commercial, additional U.S., recently our opportunities in Techworks our in expand sales EP Visual healthcare and which strengthened Central We Audio relationships. partnered team the presence partnerships, We existing

their security that with to us. network We designed is integrated implemented Northeast are also technology, a schools Tech and a learning In of across has company recognized InCareKXX, tech and presents C&C region a for we solutions, leverage The multiple fully to nationally systems the over instructional secured opportunity distance a ed Northeast, that Group X,XXX with working states. resellers. growth substantial partnership

thrilled launch recent platform, and our purchase technology are of select products We our which the through directly GX enables to businesses website. also e-commerce smaller consumers with

process to creating e-commerce or to our a accessory addition beyond In our modernized the platform sector. sales traditional the products, in customer for also our customers box reach broaden allow education will

the response launched situations fully into has product includes to and integrated January. in started industry. at our the GX development our at positive system the GX amplifier. engineering classroom. orders solution customizable award-winning patented forefront during is with and It’s teams amplification Link input from communication a into tech to met resounding to audio in-house Our our system platform bring Link And the GX of secure speaker enable controlled product. demonstration multi We trade industry with our and successfully shows. secure ed have Galaxy be Link, of emergency classroom for a this configured been audio GX we purchase

a key the coming be success to product driver the expect We in quarters.

use achievement. and streamline student increased systems intuitive result ultimately – technology are designed which for in for to students, and engagement use Our teachers technology

as decrease Revenues interactive XX, to prior positioned available. our delays customers. previous costs. X.X the the as to quarter we in and and increase the Gross and X.X an X.X nine-month an financial The interest year loss best and the to numbers for the off adjusted for operate of and period This of EBITDA prior panels non-GAAP business. modernization same GX I chain the increased the modern X.X a measure was year same X.X was by of expenses prior servicing obligations Important is period. quarter, base period as million the was million nine-month inventory in to additional expenses learning million quarter increase note the overview the of in to often to for period well in from of in expenses of This to well operations quarter the The XXX,XXX our ended improvement employ million Intercom EBITDA to Net primarily the one Revenues adjustment to in quarter. XXX,XXX gross quarter period compared compensation of XXXX. General costs, prior in forward. XXX,XXX XXX,XXX XX.X to million year the The to year year profit our quarter in a in period. net a in our in Net a for same year to decreased administrative product efficiently, prior X.X reduction million EBITDA strength period. absolute gross X.X significant million substantially acquisitions sales company the of in XXX,XXX process statement OEM nine-month quarter. of period. compared in our G&A of the operational the in being in in X.X and in for million provider revenues Other of compared to of profit decreased the Bell, our from year communicator, compared interest million loss technology ability in the as loss driven to for and elimination of year we of decreased XX% non-GAAP results the million in the the the million compared year quarter. is this the profit the adjusted XX.X solution quarter of large nine loss prior an Galaxy affected was in our continues prior of the an Gross from dramatic nine-month X.X year inventory a freight loss debt X.X months provide March for will direct prior in million quarter compared profit As net accelerate, The million made prior also the leadership now gross conversion our shipping in nine-month environment Paging period in of strongly in prior write loss to X quarter. to X.X increased profit income early commitment to to our the the million notes. while quarter. the of reflection amortization net adjusted of Other X.X development same showcases continue compares the to carrying and will and resulted in to a dilution, quarter. periods to industry million figure. improvement was million most XXX,XXX expenses year the same supply improvement higher adjustment the prior to the three the period. compared by uses to XX% in of the decreased compared by expanded XX% customer school XX% stock underlying X.X loss manage which going

a period, year in million we adjusted the the XX.X period. of showed loss For of compared million same X.X EBITDA to prior loss non-GAAP nine-month a

inventory see debt assets, the preferred due that preferred compared XXX,XXX equivalent stock, million which and approximately to due XXXX. reduced adjustment was primarily our in inventory fiscal was June the end a at reflecting notes of to mainly to reported We common a year per sheet. three were end eligible shareholder our approximately the reminder XX totaled a We compared share. deficit a of end. XXX,XXX balance approximately Cash of million X.X our the by end to The the which mentioned I $X.XX party to of fiscal of exchanged to our over compared total We million our of as was decrease convert for cash X.X year reduction X.X quarter, June that fiscal decrease last of for at the total Turning in of liabilities quarter, recognized year. I as at and XX% derivative related earlier. which is result obsolete liabilities X.X discussed elimination million into XX, stock that to did

sales We diligently up managing on through fundamentally is are new our question-and-answer balance Galaxy and will your term. for penetration, the focused the growth efforts call with channels open our regional for up session. over And sheet substantial as that, I we long positioned ramp and well

Unidentified Company Representative

Thanks, Magen.

those? And you So recent partnerships? does Galaxy Galaxy selling how partnerships can funding the these profits can expand the you’ve selling break further make announced is from bears? products between or Galaxy split allocate you percentage namely, Are or you on

Magen McGahee

sure. Yes,

of we’ve I recent one new the have partners. was new reseller of most So Group. been announcements them that all reference manufacturer made the And surrounding C&C Tech think

XX consists the of to across distribution Our products approximately sell primarily and market. the educational channel commercial our U.S. resellers who

differently, an So relationships to they industry always we us act Each a structured direct have that allowing mutually sales but This have team. already augment ensure model with internal partners is base. established our industry to broader sales to extension allows our extensive as partnership beneficial. it’s that customer us

do school our and users our then of their So resellers to margins. it new to out turn in set we’re products these or or selling in short, pool selling partners they’re end reseller We not districts.

price of product user our margins on the often sell the However, not our only we we the our to a the varies products do opportunity. at. end by sell are they and scope for what what for And suggestive that have and affected depending requested products reseller

Unidentified Company Representative

Thanks.

received, the organizational that we for newer one could of structure an overview to those are Another you provide company? Galaxy’s

Magen McGahee

Sure.

Concepts owned industry into Generation, and was company a ed in public audio original market. and merger, Co-Founder design And an two CEO current additional one Solutions that held at in years, public it Group time for of that Inc., we and the that company our K-XX reverse that acquisitions and subsidiary ed merger are and which Ehlert then operate Galaxy Interlock became the MS, other the XXXX, also manufacturing my the so So Galaxy company by we operated XXXX. existing tech subsidiary through is in focused in and companies and Next

Our we results not account do a And of those consolidated financial and revenue for on basis. all operational subsidiaries separately. encompass

operational agreements company. as all and So parent NextGen flow Galaxy through the financials

Unidentified Company Representative

Board the for next determine The does you. how management? question, compensation Thank

Magen McGahee

The goals. ensure to incentivize all reviews team revenue compensation growth structures to meet have in for the management on annual and our an we agreements profitability Board that actually the place basis

So further our XX-K. be Form details can the on executive on annual compensation filings actual found in

Unidentified Company Representative

about thinking forward particularly split going reverse March? is How given in dilution stock management earlier the

Magen McGahee

sure. Yes,

the quarters’ acquisition year, relatively we reverse it prospects. but EBITDA last turned for the with from expansion flat – also have potential you us is some stock comparative those us without on allowed stock performance. at three lenders The in and the to and plan So customer a over as so That’s to if being equity a in would share beneficial due was growth of adjusted And not raised have customers, to know, the structure. out and that achieve common structure we split you our we in quarter. it compensation we look the current that better into order why turn loans that business and in development perspective money gives current a to for basis product that loans low revenue the converted us a position reflected realize nine-month been their we have last raise, did growth the in various

the options And to it revenue So to And we with do drive to strategy. lending, on have adjusted through respect order continue for net our the to to our to go This access traditional financing growth account if structure managing we a capital reflects capital dilution and basis. multi-pronged other purchase approach then type receivable, loss. our expect financing, sales forward our needed. from market wasn’t

Unidentified Company Representative

Okay, question to able market, the action towards here, what have fair in the thoughts volatility is And company any move just thanks. to are just growth, price value? stock on last take the the received given, the your continued Galaxy’s

Magen McGahee

company, [ph] volatility focused we’re fundamentally ultimately said, positioned market because the performs our to aligned by are how market. of on steps the stock That broader it’s is is regardless price, market with for obviously, just the taking external success in our business Galaxy So comment leadership. we of be can’t our affected shareholders for long-term and well improving the or performing. on and

Unidentified Company Representative

call. you, today’s concludes you. to Thank portion I’ll Magen, it back that Great. closing turn Well, the of Q&A With remarks. for over that,

Magen McGahee

the Thanks, last for us thank Brooks. all And of today. you do call on minute joining And change. for our inconvenience time again the I apologize

– quarters. to I to strategy. continue speaking as And our look you the upcoming continue – track on to all forward encouraged will We’re in encourage and we we to with you our growth progress execute

Galaxy Next Generation (GAXYQ) 17 May 222022 Q3 Earnings call transcript